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It's completely rational to buy a stock if you think other ppl are going to be irrational and make the price surge.



I have an image of highly rational traders sitting in high pressure meetings coming up with stupid ideas so that they can front-run stupid people.


What if you think everyone else is rational, but they'll all buy the stock for the same reason as you? It's an entirely rational system that leads to a completely irrational outcome.


Sounds like a keynesian stupid contest.


For people who don't know the reference: https://en.wikipedia.org/wiki/Keynesian_beauty_contest




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